Green Dot 2010 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2010 Green Dot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 107

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107

Note 2 — Summary of Significant Accounting Policies (continued)
We have evaluated subsequent events through the date that the financial statements were issued,
based on the accounting guidance for subsequent events. Based on our evaluation, we did not identify any
recognized or nonrecognized subsequent events that would have required adjustment to or disclosure in
the consolidated financial statements.
Change in Fiscal Year
On September 29, 2009, our board of directors approved a change to our fiscal year-end from July 31
to December 31. Included in this report is the transition period for the five months ended December 31,
2009. Accordingly, these financial statements present our financial position as of December 31, 2010,
December 31, 2009 and July 31, 2009, and the results of our operations, changes in redeemable
convertible preferred stock and in stockholders’ equity and cash flows for the year ended December 31,
2010, five months ended December 31, 2009 and years ended July 31, 2009 and 2008.
Unaudited Comparative Financial Information
As a result of our change in fiscal year-end, we have presented below, for comparative purposes, our
unaudited consolidated statement of operations and condensed consolidated statement of cash flows for
the five months ended December 31, 2008. In our opinion, the unaudited consolidated financial infor-
mation reflects all adjustments, consisting of normal and recurring adjustments, necessary for the fair
presentation of the results of our operations and our cash flows for the five months ended December 31,
2008.
Five Months Ended
December 31, 2008
(In thousands,
except per share data)
Operating revenues:
Card revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46,460
Cash transfer revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,391
Interchange revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,212
Total operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,063
Operating expenses:
Sales and marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,001
Compensation and benefits expenses . . . . . . . . . . . . . . . . . . . . . . . . 15,409
Processing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,765
Other general and administrative expenses . . . . . . . . . . . . . . . . . . . . 9,463
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,638
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,425
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,679
Income tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,424
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,255
Dividends, accretion, and allocated earnings of preferred stock . . . . . . . (11,153)
Net loss allocated to common stockholders . . . . . . . . . . . . . . . . . . . . . . $ (898)
61
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)